Politics, Spending Cloud Panama Optimism

Jul 26, 2012

Panama has among the best GDP growth in LatAm and is seeing record investment, though analysts’ outlooks are tempered by an increasingly tense political climate and fears that the government may be overspending and risking economic imbalances. GDP forecasts remain above 10% for this year, but with elections approaching in 2014 and President Ricardo Martinelli’s popularity sagging, many fear an uptick in public expenditures, especially with 6%-plus inflation in the background. “I am worried mostly about the government’s...